Although he said he regretted Rogoff's departure, Bernake added that he understood this was a good opportunity.

"Of course, Harvard's economics department is excellent, and Cambridge in general is very attractive for applied economists like Ken," he said.

Another factor in Rogoff's decision to leave Princeton was his wife's career as a film producer.

"She felt there would be more opportunities for her in the Boston area than in Princeton," Rogoff said.

Kremer and Rogoff fill holes in the department, Williamson said.

"Professor Kremer fills a gap in devel- opment economics while Professor Rogoff fills agap in international economics, two areas that arevery popular with the undergraduates," saidWilliamson, who is also Bell professor ofeconomics.

Though both men just recently accepted tenure,the process--comprised of the initial offer, thereview by an ad hoc committee and additionalnegotiations--took over a year, according toWilliamson.

Rogoff and Kremer will teach both graduate andundergraduate economics courses. Both professorswill start teaching at Harvard in the fall